Downtown Office Building with Two
For Sale
$945,000
608 Shelden Avenue, Houghton, MI 49931
Office building with separate main-street and lakeshore-access levels, offering flexible floor plan configurations.
Property Size5,000 SF
Price / SF$189
Days on Market549
Property Features for 608 Shelden Avenue
General Information
Standard status
Active
Size
5,000 SF
Total Parking Spaces
6
Additional Details
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$6,536
Amenities
fiber internet
Building Details
Stories
2
Listing Agency:
CENTURY 21 AFFILIATED
Listed By:
KRISTINE WEIDNER (JUKURI) · License #6502319714
(906) 281-1848
Source:
Exprealty
Added: Mar 5, 2025
Changed: Aug 20
Last Checked: Sep 4 at 9:06AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of CENTURY 21 AFFILIATED
Investment Insights
Based on property information with market context.
This downtown office building features extensive remodeling and a flexible floor plan that can be used as one unit or separated into upper and lower offices. The main level includes one large open area, two private offices, a restroom, and a kitchenette area. The lower level offers a large conference room, one private office, an office/reception area, two restrooms, and two storage rooms that may support additional private office space.
The main level has access from Shelden Avenue, while the lower level has direct access from Lakeshore Drive. The property is serviced by fiber internet, and central air is provided for the main level only.
Recent improvements since 2019 include a new roof (approximately 6+ years), flooring, bathroom updates, some window replacements, interior ceiling insulation, interior painting, exterior painting, and a floor plan redesign. Public parking is available along Shelden Avenue, with approximately 3 to 6 parking spaces in the back of the building, subject to automobile size. City dumpster access is located on the lower back side of the building, subject to City terms and conditions.
The main level has access from Shelden Avenue, while the lower level has direct access from Lakeshore Drive. The property is serviced by fiber internet, and central air is provided for the main level only.
Recent improvements since 2019 include a new roof (approximately 6+ years), flooring, bathroom updates, some window replacements, interior ceiling insulation, interior painting, exterior painting, and a floor plan redesign. Public parking is available along Shelden Avenue, with approximately 3 to 6 parking spaces in the back of the building, subject to automobile size. City dumpster access is located on the lower back side of the building, subject to City terms and conditions.
Key Highlights
- Office building with main‑street (Shelden Ave) access on the main level and direct Lakeshore Drive access on the lower level
- Flexible layout: use as one unit or split into two units (upper and lower levels)
- Main level includes a large open area, 2 private offices, restroom, and kitchenette area
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$49,586
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.25%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$991,720
$991.7K
Cap Rate 7%
$708,371
$708.4K
Cap Rate 9%
$550,956
$551.0K
Market Conditions
NOI Build-Up for 5,000 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$85.2K $17.04/SF
− Vacancy
−$19.1K −$3.82/SF
EGI
$66.1K $13.22/SF
− OpEx
−$16.5K −$3.31/SF
NOI
$49.6K $9.92/SF
Area
Houghton County, MI
Vacancy
22.40%
Lease Rate
$17.04 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$991,720
Cap Rate 7%
$708,371
Cap Rate 9%
$550,956
Alternative Uses
Best Use
Office B
$708.4K
$619.8K – $826.4K
NOI $49,586 @ 7.0% cap · market cap 5.25%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$61.82M
$54.10M – $72.13M
NOI $4,327,690 @ 7.0% cap · market cap 457.96%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
443
Businesses Nearby
Explore this area
Business Placement
Demographics for 49931, MI
10,307
Population
3,490
Households
3
Avg Household Size
25
Median Age
60%
College-Educated
95%
High-School Grad
26.4 sq mi
ZIP Area
390
Density / Sq Mi
$47,279
Median Household Income
$10,579
Median Earnings
$853
Median Rent
$221,200
Median Home Value
Market
Vacancy Rate% for Office in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Office building with separate main-street and lakeshore-access levels, offering flexible floor plan configurations.
Where is this office building located?
The property is located at 608 Shelden Avenue Houghton, MI.
What is the asking price?
The asking price for this property is $945,000.
What are key features of this property?
This property features: Office building with main‑street (Shelden Ave) access on the main level and direct Lakeshore Drive access on the lower level; Flexible layout: use as one unit or split into two units (upper and lower levels); Main level includes a large open area, 2 private offices, restroom, and kitchenette area
